All Questions

It depends on the audience and the secret sauce of the thesis. 

It depends on the audience and the secret sauce of the thesis. 

The goal is to communicate on a regular schedule to set expectations about communication with LPs, otherwise some will start demanding heavy communication. I would look to send one good update once a quarter, a larger update at the end o...

The goal is to communicate on a regular schedule to set expectations about communication with LPs, otherwise some will start demanding heavy communication. I would look to send one good update once a quarter, a larger update at the end of the year, and hold one or two virtual events per year, unless you can afford to do a nice in person event, which can be done once per year.

This web site is not publicly available. This rules are very simple. Do not put information about your fund or your Thesis on a public web site. You can describe your team. You can describe your vision for the future. You can describe y...

This web site is not publicly available. This rules are very simple. Do not put information about your fund or your Thesis on a public web site. You can describe your team. You can describe your vision for the future. You can describe your interests. However, I would not direct LPs to a fund web site with any fund information. You can direct LPs to your LinkedIn profile, which should not include details of your fund or fund Thesis.

You can’t sign any agreements until all the entities are formed

You can’t sign any agreements until all the entities are formed

You can use a venture partner agreement. Click this link to learn more about Venture Partner Agreements: https://govclab.com/2022/03/10/venture-share/

You can use a venture partner agreement. Click this link to learn more about Venture Partner Agreements: https://govclab.com/2022/03/10/venture-share/

We recommend that you don’t include your own contribution for this exercise.

We recommend that you don’t include your own contribution for this exercise.

In general, it's suboptimal to use terms like this because many people may not understand the terminology and the benefit.

In general, it's suboptimal to use terms like this because many people may not understand the terminology and the benefit.

Luis Michel Jassir Right now, Home by VC Lab is designed as the a full-featured fund CRM for VC funds specifically. We built it because options like HubSpot are too complex and too expensive.

Luis Michel Jassir Right now, Home by VC Lab is designed as the a full-featured fund CRM for VC funds specifically. We built it because options like HubSpot are too complex and too expensive.

Each investor will be charged retroactively on the date they are admitted into the fund, as if they were part of the first close. If the first close is $2.5MM with a management fee of 2%, the fees will start at $50k per year or $12.5k q...

Each investor will be charged retroactively on the date they are admitted into the fund, as if they were part of the first close. If the first close is $2.5MM with a management fee of 2%, the fees will start at $50k per year or $12.5k quarterly.  If a second close takes place 3 months into the life of the fund, bringing the new fund size to $5MM, the LPs that are part of this second close would be charged a catch up fee for the first 3 months of the fund, on the day they are admitted. This would bring the management fees to $100k per year or $25k quarterly.  In the end, each investor will have a 2% management fee charged to their Capital Account balance in the first year of the funds life. 

Generally, you desire to oversubscribe. So, you state a very realistic target, and then work to raise more. So, I would say that you are raising $20 MM, and then shoot to try and get $30 MM.

Generally, you desire to oversubscribe. So, you state a very realistic target, and then work to raise more. So, I would say that you are raising $20 MM, and then shoot to try and get $30 MM.

This depends on what you have. It is not uncommon to include: Presentation, Deal Memo, Term Sheet and Legal Agreements. It can also include any Research, Models and Bios, particularly for later stage deals. Try to make the folders as con...

This depends on what you have. It is not uncommon to include: Presentation, Deal Memo, Term Sheet and Legal Agreements. It can also include any Research, Models and Bios, particularly for later stage deals. Try to make the folders as consistent as possible with information on the deals.

Generally, you can not directly compensate for sourcing and closing money, as these are fundraising commissions that require licensing in many jurisdictions. Funds normally offer Venture Partner roles to people that help with fundraising...

Generally, you can not directly compensate for sourcing and closing money, as these are fundraising commissions that require licensing in many jurisdictions. Funds normally offer Venture Partner roles to people that help with fundraising after the funding closes.

It’s more of an exception and you should try to avoid hurdles.

It’s more of an exception and you should try to avoid hurdles.

New firms do SPVs. Established firms set up growth funds with a separate team.

New firms do SPVs. Established firms set up growth funds with a separate team.

You should offer the LPs in Fund 1 the opportunity to invest first. You will also need LPAC approval if Fund 1 has reserves. 

You should offer the LPs in Fund 1 the opportunity to invest first. You will also need LPAC approval if Fund 1 has reserves. 

Send them a PACT and don’t over-think this. It’s a LONG way between here and them wiring money. So say: Great, here is a non-binding commitment as a next step.

Send them a PACT and don’t over-think this. It’s a LONG way between here and them wiring money. So say: Great, here is a non-binding commitment as a next step.

I would not share a Deal Memo with anyone that did not sign a PACT, and the PACT has light NDA language.

I would not share a Deal Memo with anyone that did not sign a PACT, and the PACT has light NDA language.

It's more of a nice to have. In my experience, this usually causes more confusion that it's worth. First, people usually don't read them. Second, the data room should not be opened until after an LP signed a PACT for you, and at that po...

It's more of a nice to have. In my experience, this usually causes more confusion that it's worth. First, people usually don't read them. Second, the data room should not be opened until after an LP signed a PACT for you, and at that point you don't want to over-inform.

Focus on the thesis first. Once you get the thesis right, then focus on the story, then focus on portfolio construction. There is no right answer to your question, because this is dependent on your stage, and thesis. The vast majority of...

Focus on the thesis first. Once you get the thesis right, then focus on the story, then focus on portfolio construction. There is no right answer to your question, because this is dependent on your stage, and thesis. The vast majority of Fund 1s will not have follow-on because they funds are too small for example.

You can’t talk about a fund until it is closed, so having an established VC or GP as an LP does not add anything to your fundraising process. Furthermore, you should NEVER talk about LPs with other LPs, or you risk both reputational dama...

You can’t talk about a fund until it is closed, so having an established VC or GP as an LP does not add anything to your fundraising process. Furthermore, you should NEVER talk about LPs with other LPs, or you risk both reputational damage and losing LPs. Some established funds want access and deal flow, which is why they have the ability in their LPA to invest in other funds. Select LP investing is part of their Thesis and / or strategy. Making these types of investments is commonly prohibited in the LPA AND presents both conflicts of interest and fiduciary duty issues. It’s fairly uncommon to see established VCs or GPs make LP investments, so don’t waste a lot of time on this. Among nearly 300 alumni firms, I’ve heard of this happening only a handful of times.